Bombay High Court High Court

Mahabir Nuniwal vs Neptune Co-Operative Housing on 26 March, 2009

Bombay High Court
Mahabir Nuniwal vs Neptune Co-Operative Housing on 26 March, 2009
Bench: Anoop V.Mohta
dgm
 gm                   IN THE HIGH COURT OF JUDICATURE AT BOMBAY

                          APPELLATE SIDE CIVIL JURISDICTION

                                WRIT PETITION NO.3030 OF 2009




                                                                                               
           Mahabir Nuniwal, Age 54,
           Indian Inhabitant, of Mumbai,
           residing at K, D.N.Nagar, J.P.Road,




                                                                 
           Andheri (West), Mumbai 400058                                           Petitioner
                                                                (Orig.Disputant)

                          Vs.




                                                                
           1. Neptune Co-operative Housing
                Society Ltd.
                A cooperative society registered
                under the provisions of the M.C.S.
                Act, 1960, and having its registered
                address at K3/K4, D.N.Nagar,




                                                      
                J.P.Road, Andheri (West),
                Mumbai 400058.
                                   
           2. M/s.Vaidehi Akash Housing Pvt.Ltd.
                A company incorporated under the
                provisions of the Indian Companies
                Act, 1956, and having its registered
                                  
                address at Pratik, 1st floor,
                Opp.Apna Bazar, J.P.Road,Andheri(West),
                Mumbai 400058.                                                 ..Respondents
                                                                 (Orig. Opponents)
         

                                               ALONG WITH
                                 WRIT PETITION NO.3017 OF 2009
      



           Sulochana S. Gaikwad, Age 72,
           Indian Inhabitant, of Mumbai,
           residing at K, D.N.Nagar, J.P.Road,
           Andheri (West), Mumbai 400058                                           Petitioner
                                                                (Orig.Disputant)
     




                          Vs.

           1. Neptune Co-operative Housing
                Society Ltd.
                A cooperative society registered





                under the provisions of the M.C.S.
                Act, 1960, and having its registered
                address at K3/K4, D.N.Nagar,
                J.P.Road, Andheri (West),
                Mumbai 400058.

           2. M/s.Vaidehi Akash Housing Pvt.Ltd.
                A company incorporated under the




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                                                  (2)




          provisions of the Indian Companies
          Act, 1956, and having its registered
          address at Pratik, 1st floor,
          Opp.Apna Bazar, J.P.Road,Andheri(West),




                                                                                      
          Mumbai 400058.                                                 ..Respondents
                                                           (Orig. Opponents)




                                                           
                                         ALONG WITH
                           WRIT PETITION NO.3028 OF 2009

     Padmaraj Kanmalji Israni,Age 38,




                                                          
     Indian Inhabitant, of Mumbai,
     residing at K, D.N.Nagar, J.P.Road,
     Andheri (West), Mumbai 400058                                        Petitioner
                                                       (Orig.Disputant)

                    Vs.




                                                
     1. Neptune Co-operative Housing
          Society Ltd.       
          A cooperative society registered
          under the provisions of the M.C.S.
          Act, 1960, and having its registered
          address at K3/K4, D.N.Nagar,
                            
          J.P.Road, Andheri (West),
          Mumbai 400058.

     2. M/s.Vaidehi Akash Housing Pvt.Ltd.
          A company incorporated under the
      

          provisions of the Indian Companies
          Act, 1956, and having its registered
          address at Pratik, 1st floor,
   



          Opp.Apna Bazar, J.P.Road,Andheri(West),
          Mumbai 400058.                                                 ..Respondents
                                                           (Orig. Opponents)





                                         ALONG WITH
                           WRIT PETITION NO.3029 OF 2009

     Nalini Dawade, AGE: 50,
     Indian Inhabitant, of Mumbai,
     residing at K, D.N.Nagar, J.P.Road,





     Andheri (West), Mumbai 400058                                        Petitioner
                                                       (Orig.Disputant)

                    Vs.

     1. Neptune Co-operative Housing
          Society Ltd.
          A cooperative society registered




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                                                   (3)




          under the provisions of the M.C.S.
          Act, 1960, and having its registered
          address at K3/K4, D.N.Nagar,
          J.P.Road, Andheri (West),




                                                                                         
          Mumbai 400058.

     2. M/s.Vaidehi Akash Housing Pvt.Ltd.




                                                           
          A company incorporated under the
          provisions of the Indian Companies
          Act, 1956, and having its registered
          address at Pratik, 1st floor,
          Opp.Apna Bazar, J.P.Road,Andheri(West),




                                                          
          Mumbai 400058.                                                 ..Respondents
                                                           (Orig. Opponents)


                                         ALONG WITH
                           WRIT PETITION NO.3031 OF 2009




                                                 
     Maheshkumar Kanmallji Israni,Age 32,
     Indian Inhabitant, of Mumbai,
                             
     residing at K, D.N.Nagar, J.P.Road,
     Andheri (West), Mumbai 400058                                           Petitioner
                                                          (Orig.Disputant)
                            
                    Vs.

     1. Neptune Co-operative Housing
          Society Ltd.
          A cooperative society registered
      

          under the provisions of the M.C.S.
          Act, 1960, and having its registered
          address at K3/K4, D.N.Nagar,
   



          J.P.Road, Andheri (West),
          Mumbai 400058.

     2. M/s.Vaidehi Akash Housing Pvt.Ltd.
          A company incorporated under the





          provisions of the Indian Companies
          Act, 1956, and having its registered
          address at Pratik, 1st floor,
          Opp.Apna Bazar, J.P.Road,Andheri(West),
          Mumbai 400058.                                                 ..Respondents
                                                           (Orig. Opponents)





     Mrs.Varsha Palav with Mr.V.C.Singh for the
     petitioners.

     Mr.Vijay A. Thorat, Sr.Advocate with Mr.R.A.Thorat
     for respondent no.1.




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     Mr.A.Y.Sakhare, Sr.Advocate with Ms.Lakshmi Murali
     for respondent no.2.

                                                    CORAM : ANOOP V.MOHTA,J.

V.MOHTA,J

DATED : 26th March, 2009.

ORAL JUDGMENT:

Heard finally by consent of the parties.

Since the issues involved in all these petitions are

common, the same are being disposed of by this common

judgment.

2. The ig petitioners being aggrieved by the Order of

appointment of Receiver on Applications filed by the

respondents-society initially granted by a common

order dated 10.12.2008 by the Cooperative Court,

Mumbai in Disputes filed by the respondents-societies

praying for damages, as well as, an interim injunction

including an appointment of Receiver against the

petitioners/opponents in the said Disputes.

3. The Maharashtra Cooperative Appellate Court,

Mumbai has also maintained the said order by a common

order dated 07.03.2009 and thereby dismissed the

Appeals filed by the petitioners.

4. Admittedly, as the requisite members, i.e. 70%,

were available at the relevant time and after due

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amalgamation of two societies i.e. K-3 and K-4 and as

they decided to redevelop the entire property of both

the societies for larger benefits to members and as

the buildings were in a dilapidated condition and

required to be demolished, based upon various

Resolutions, resolved to demolish the existing

building and decided to construct the new buildings by

carrying out development on the said plot, the

Agreements for Developments dated 25.07.2005 and

12.01.2006 have been entered into between the two

societies and as
ig respondent no.2 has been appointed as

Developer to develop the entire society’s properties

and as the Agreement has been confirmed under the Deed

of Confirmation for Development dated 03.03.2007 by

respondent no.1-society and as respondent no.2 has

been proceeding with the redevelopment work, after due

registration of respondent no.1-society, as the

development of the plot/property in question is in

progress since then.

5. The concerned respondent, pursuance to the

Agreement has spent huge amount of about more than

Rs.3 crores (Rupees three crores). Out of 80 members,

54 members have already vacated their respective

premises. The concerned respondent paid Rs.1 lac

(Rupees one lac) to each member and has been paying

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rent for their occupation at other place at the rate

of Rs.8,000/- per month apart from huge money on the

construction of development of plot in question, based

upon the approved Plan and I.O.D. as amended from

time to time.

6. The petitioners dispute with regard to the various

Resolutions about appointment of the builder including

their challenge to the basic amalgamation as well as

the requisite 70% is still pending. Under the Scheme

of Development ig Control Regulation for Greater Mumbai,

1991, the Cooperative Housing Society/Developer, if

have obtained No Objection Certificate (NOC) from the

MHADA/Mumbai Board, thereby sanctioning additional

balance FSI with a consent of 70% of its members and

where such NOC holder has made provision for

alternative accommodation in the proposed building

(including transit accommodation) then it shall be

obligatory for all the occupiers/members to

participate in the Redevelopment Scheme and vacate the

3existing tenement for the purpose of redevelopment.

It is also provided that in case of failure to vacate

the existing tenement for the purpose of

redevelopment, an appropriate proceedings can be

initiated for the purpose of getting tenements vacated

from the non-cooperative members.

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7. Merely because there are disputes or challenges

pending as raised by the petitioners and such other

members, that itself cannot be the reason to stop the

progress of the development which is at advance stage.

The requisite members/percentage, available at the

relevant time and by following due procedure of law,

based upon the same, the parties proceeded further and

now the development is at advance stage, the

grievances, even if any of the persons like the

petitioners, ig unless adjudicated finally, the progress

just cannot be halted at the instance of such persons.

8. In such circumstances, there are always objections

and disputes by remaining 30% members or less against

such Scheme which, in my view, unless decided finally,

cannot be the reason to halt the advance development

of the project, as it involves huge money which are

already spent and as majority of the members have

already acted upon the said Agreements and are

enjoying the benefits out of the same.

9. In the present cases,as noted and observed by both

the Courts, this Court in other Writ Petitions had

occasion to consider the similar/identical grievances

raised against the concerned respondents. In Writ

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Petition No.5540/2007 in para 5, this Court by its

Order dated 27th September, 2007 has observed as

under:

“5. …….. Selection of developer and
entering into a contract with the developer
does not depend upon the whims of one or two
members. The respondent No.2 has been
appointed as a developer by the society, and

said action has been approved by the General
Body. Thus the appointment of respondent
No.2 as a developer, prima facie appears to
be legal, and at any rate, cannot be flouted
at this stage.”

Again in ig Writ Petition No.3783/2008, this Court by

its order dated 6.08.2008 has observed in para 11,

the relevant portion of which is as under:

“11. ……..Petitioner cannot make any
grievance regarding validity of the order
amalgamating the two societies as well as,

development agreement entered into by K-3
and K-4 societies and subsequent deed of
confirmation executed by the respondent

no.1 society, especially when, the majority
members have consented for development
agreement. At this stage, it is also worth
to mention that way back in 2006 MHADA
declared both the buildings i.e. K-3 and

K-4, as unfit for the habitation. It is
also not disputed by ld. counsel for the
petitioner that K-4 building has already
been demolished. In the set of facts and
circumstances of both cases, in my opinion,
the redevelopment work cannot be stalled at

the instance of the petitioner.”

10. Now, merely because in the Disputes filed by the

respondent-society, claimed damages against the

petitioners for creating obstruction in the Project

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and as prayer are made for injunction/appointment of

Receiver, the learned Courts below, in view of the

background referred above, granted an Order of

appointment of Receiver which, in my view, cannot be

said to be perverse or without any basis. On the

contrary, considering the Scheme and purpose as

referred above, it is well within the frame work of

law and the record. The submission that such Dispute

itself is not maintainable for damages including such

application for Receiver as granted in the present

facts and ig circumstances of the case is not correct or

at least that cannot be the reason to interfere with

the orders passed by the Courts below at this stage of

the matter.

11. Sofar as the subsequent amendment to the I.O.C.

or entitlement of their area as per their Agreement or

otherwise is always a matter which can be decided or

adjudicated by the society/developer by resolving the

problems, if any. All the valid members are entitled

to get resolved such Disputes even of area or their

entitlement as per the Scheme or as per the Rule.

But, if such members instead of submitting to the

Scheme want to create hurdle or want to obstruct the

proceedings/redevelopment of the Project in question,

at their instance on that ground also such Projects

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just cannot be halted.

12. The legitimate members, the builders and the

societies as recorded above can resolve the internal

dispute with regard to the properties construction

area, if any or such other issues on that ground also,

I am not inclined to interfere with the order as

passed by the Courts below.





                                                                          
     13.                       I             am          not             considering                 at          this         stage                basically        the

     maintainability                    of
                                         ig                   the                 Suit          or          the          main                      relief           as

     claimed                  in                        the                                pending                         Suits/the                         Disputes.

     Considering                        the                    facts             and              circumstances,                              the                order
                                       
     appointing              the              Receiver                   to             take              possession                     is           only          for

     temporary                          displacement,                      there               is           no             dispute                  about           the
      

     ownership                     of             the          property                and            the          object                and                   purpose

     of        requirement                   of          vacant                 possession                  of           land.                        Even          the
   



     temporary                accommodation                                would                     be                 provided                      to            the

     Petitioners.                       It               needs                   to       be          provided                      as               per            the





Scheme itself. Such members will be put back in

possession in the new building as per the Scheme.

14. Admittedly, the petitioners are not at present

ready to vacate the premises which is definitely

affecting the further development of the Scheme. In

this background I am also of the view that there is

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sufficient case made out by the concerned respondents

for appointment of Receiver and Order as passed in the

present cases. All the basic elements as required to

pass such order is clearly borne out from the record

itself. The peculiarity of the Scheme read with the

circumstances including the requirement of the vacant

land further supports the grant of such order.




     15.               The                  petitioners                are           not        willing               to                give                 any




                                                                   
     security                  to                  support             any             interim              order          or                        injunction

     order,               if           passed
                                       ig                 by          this           Court             stopping             the                          progress

     of               the                 Project,              as,                        admittedly,                the                           concerned

     respondents                      have           already              spent              more            than           Rs.3                           crores
                                     
     (Rupees                three                  crores)          for          the            Project        and                  they                      are

     regularly              paying                   the               considerable                             amount                       to               all
      

     members who have already                      shifted for their

     occupation/rent charges.
   



     16.                  Taking             all       this         into          account,             in       my          view,              it              is





     in             the             interest         of         all            the           parties          that          such                          Project

     should               be           completed               as         early            as        possible              so           that                  all

     the             members                 who           have             already             shifted         pursuant                to                    the





Scheme will be in a position to use and utilise

redeveloped property.

17. Resultantly, all these writ petitions are

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dismissed. No costs.

18. The learned counsel for the petitioners seek stay

of this order for four weeks from today. Considering

the reasoning given above, I am not inclined to grant

any further protection in this regard.

19. However, a statement is made by the learned

counsel for respondents 1 and 2 that they shall not

take any action pursuance to the impugned order

without giving ig at least two weeks notice to the

petitioners. This, according to me, suffice to

protect the present position of the petitioners, if

any.

( ANOOP V. MOHTA, J.)

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